Managing Money Problems Managing Money Problems Financial Wellbeing Top tips for managing your money Budgeting Benefits Banking Savings and affordable credit Energy costs Home contents insurance Debt advice Illegal money lending Bernicia Top tips for managing your money 1) Budgeting - add up all the money that you have coming in and work out what you have to pay out. From this you will find out what you have left. 2) Benefits - make sure that you are receiving the right money: i. If you work, are you on the right tax code? Could you also be entitled to benefits to top up your wages? ii. If you are claiming benefits, are you getting the right one’s? 3) Banking - open a basic bank account. This will help you budget better by setting up direct payments from your account to the people you pay your bills to – including your rent to Bernicia. 4) Savings and affordable credit - open a savings account for treats and emergencies – even if you save a few pounds per week it will soon add up. Saving with a Credit Union can open up access to affordable borrowing. 5) Energy costs - review the amount you pay for gas and electricity to make sure you get the best deal from your energy supplies. 6) Home contents insurance - make sure you have home contents insurance cover. Don’t be caught out if an unexpected event damages your possessions – things are expensive to replace. Bernicia can offer tailored insurance packages for your home contents from less than £1 per week. 7) Debt advice - contact organisations who can help if you are in debt or you are struggling to make ends meet. Let organisations you owe money to know you are struggling, they may be able to renegotiate payments. 8) Illegal money lending - don’t get bitten by loan sharks. No matter how hard your situation is, there are organisations that can help without having to go to illegal money lenders. 9) Bernicia - if you are a tenant of Bernicia and are struggling to pay your rent or with any aspect of managing your home – get in touch with us early – don’t let a small problem grow into a big one! Telephone: 0344 800 3 800 Email: [email protected] Budgeting Good money management can mean many things – from living within your means to saving for short and long term goals, to having a realistic plan to pay off your debts. If you want to get on top of your finances, a budget is a really good way to start. Basically it’s just a record of money you have coming in (from things like your salary or wages, pensions or benefits) and payments that you make (such as rent, council tax, gas and electricity and other living expenses). What’s left is what you have available to spend on other things. There are many ways you can set up your own budget including using a spreadsheet on a computer or by simply writing it down on a piece of paper. The Money Advice Service offers an online budget planner that takes about 30 minutes to complete after which you can save your results and return to update them at any time. Visit the Money Advice Service Budget Planner (www.moneyadviceservice.org.uk/en/ tools/budget-planner). Benefits The benefits system is complex and wide ranging, every year £millions are left unclaimed. Even if you are working there may be some extra help you are entitled to, check out the links below to find out more about current benefits and any planned changes. Benefits entitlement www.gov.uk/browse/benefits/entitlement Benefits for families www.gov.uk/browse/benefits/families Carers and disability benefits www.gov.uk/browse/benefits/disability Child Benefit www.gov.uk/browse/benefits/child Death and benefits www.gov.uk/browse/benefits/bereavement Heating and housing benefits www.gov.uk/browse/benefits/heating Jobseekers Allowance and low income benefits (including Income Support, Budgeting Loans and Pension Credits) www.gov.uk/browse/benefits/jobseekers- allowance Tax credits www.gov.uk/browse/benefits/tax-credits Universal Credit www.gov.uk/universal-credit Universal Credit is a new benefit that replaces 6 existing benefits with a single monthly payment. For further information see Universal Credit section on our website. Banking There are lots of reasons why you might need a bank account Paying bills - instead of remembering when you have to pay your monthly bills, you can arrange automatic payments to come out of your bank account at a fixed time. It’s an easy way of paying your rent. Keeping cash safe - while you think keeping cash in your home is safe – it’s not protected from things like flood, fire or theft. In a bank your money is insured, which means it’s safe. Getting your wages - many employers will only pay your wages into a bank account, so if you’re looking for work be ready; having an account will be one less thing to think about when you start work or change your job. Checking your balance - managing your money is easier when you can see what you are spending it on. You’ll receive regular statement through the post – or you can check online – that will list when your money goes out and comes in. Living without debt - with many basic bank accounts, they’ll tell you when you try to get money out at a cash point or pay for something that you are out of cash – on some accounts you can even set up an alert, so if you are getting low on funds, you receive a text to warn you. Receiving benefits - the government has stopped paying benefits by cheque – so having a bank account is essential to receive your payments. Shopping online - having an account means you can buy things – in many cases cheaper than on the high street – online, saving time and money. Personal safety - carrying cash makes it an easier target for thieves. Carrying a debit card means your money sits behind a PIN code that only you know. There is a useful guide to bank accounts and products available from the Money Advice Service www.moneyadviceservice.org.uk/en/categories/bank-accounts-and- credit-or-debit-cards. Savings and affordable credit Credit Unions can offer safe savings accounts and low cost loans. A credit union is a financial co-operative that offers safe savings accounts and low cost loans to members. They are regulated by the Financial Services Authority (the UK’s financial services’ regulator). Credit Unions are great because: • Everyone is welcome and it’s easy to join. • Paying in and service points are available locally. • Your money stays within the local community. They offer: • Flexible ways to save from as little as £1 per week. • A range of services, including Junior Savers accounts. • Regular savers who are over the age of 18, apply for the ability to low cost loans (minimum £50). • Quick loans for non members may be available from some credit unions. Credit unions can help you manage your money better by encouraging you to save what you can. Once you have a reliable record as a saver, you can apply to borrow money. Credit unions will only let you borrow what you can afford to pay. Many credit unions offer more than just savings accounts and loans. Credit unions can offer a whole range of different financial products such as ‘Quit and Save’ for people cutting down on smoking, Family Funeral Plans, and schemes to supply cookers, fridges and other household items. Northern Money is a directory of North East credit unions. It is designed to make it easy for people to find information about savings and loans in their local areas. To find out more visit www.northernmoney.org.uk where you can locate your nearest credit union and information about the services they provide by entering your home or work postcode into the search facility. Alternatively telephone 0191 2794881. Energy costs Don’t pay over the odds for gas and electricity. uSwitch is a free, independent and impartial comparison and switching service either online, or by phone, that is designed to make sure you’re getting the best price for your energy. The process is simple and quick and can be easily completed in a few minutes either online or by using the Freephone helpline. Why use uSwitch? • All of the paperwork is taken care of for you. • There is no charge for the service. • Comparisons are made with all UK energy suppliers. • Using the service and switching is easy. A dedicated phone line is available to answer all enquiries and help you switch. • Ofgem accredited Visit www.uswitch.com or call Freephone 0800 6888 244 to get started, all you will need is your postcode and your most recent energy bill to hand if possible. Home contents insurance What would you do if you lost everything in your home? Buying everything again would cost a fortune, so contents insurance is vital if you’re going to cover yourself for unexpected events like a burglary, fire or flood. You might believe that Bernicia automatically insures your furniture, belongings and decoration against fire, theft, vandalism or water damage such as burst pipes. THIS IS NOT THE CASE. Unfortunately, sometimes this only becomes a reality after the damage is done. To make it easy for you to insure your belongings we have a special household contents insurance scheme. This insurance scheme is arranged with Royal and Sun Alliance Insurance plc and is available only to Bernicia tenants.